Bailees' customers insurance
Contractor shall obtain, at Contractor’s expense, and keep in effect
during the term of this Contract, Bailees´ Customers Property Insurance
covering any and all State property left in the care, custody, or control of
the Contractor. Coverage shall include valuable papers, including but not
limited to microfilm. Coverage shall be
written on an occurrence basis. Combined single limit per occurrence shall not
be less than $ _______ for each site or
When do they apply?
- Use when state property is being entrusted to and will be under the
care, custody and control of the contractor (Bailee) such as for storage or
servicing. This can include anything
from art to valuable papers to dry cleaning entrusted to the contract. Commercial General Liability insurance does
not cover this exposure.
- Check to insure that all costs, including extra expenses are included in
coverage limits. Check the policy exclusions to ensure that the type of
valuable papers you have will be covered. Coverage may or could be a part of IT
errors and omissions coverage.
- Assess the risks of the particular contract to determine appropriate
insurance limits and risk control measures and Use the Risk Assessment tool to evaluate exposure to loss as the basis for coverage limits. Determine
what it would cost to recreate or restore documents. Base this amount on the
maximum probable loss that could occur, including the cost of reproduction and
- To further ensure adequate coverage, ask of the contractor the total
value of all property of others entrusted to the contractor at any one
time. Request an insurance requirement
in an amount equal to this value.